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EU officials revealed they will adopt Donald Trump's import duties on steel, effectively doubling taxes on foreign steel to 50% in a move described as "a survival risk" to the industry in the UK.

Major Challenge for UK Steel Exports

With 80% of British exports going to the European Union, this change creates the British steel sector's biggest ever challenge, as stated by the lobby group representing the sector.

New EU Measures and Regulations

In its plan presented to the European parliament on Tuesday, the EU executive additionally suggested cutting the existing quota for duty-free imports and obliging international producers to disclose the origin of steel production to stop Chinese producers sneaking products in through other countries.

The European steel industry faced potential collapse – we are protecting it so that investments can be made, decarbonise, and regain competitiveness.

Overhaul of Existing System

These measures are intended to replace a quota system that has been in operation for the past seven years and which is due to expire in 2026 and is now seen as outdated. To do nothing could have been "catastrophic" for the industry, one EU official stated.

Sector Reaction and Concerns

However, Gareth Stace, from the industry body British Steel, stated EU increasing duties would pose "the most severe challenge the British steel sector has encountered".

He called on the government to "recognise the critical necessity to implement domestic protections to defend" the UK steel industry – which is affected by a twenty-five percent duty from the US recently – from the threat of vast quantities of world steel diverted away from American and EU markets.

This surge in foreign steel "might prove terminal for many of our remaining steel companies.

Union and Government Pressure

Union leaders, assistant general secretary at labor union the industry union, said the proposed changes represented "a survival risk" to British steel production.

Labor and business representatives urged the UK government to begin talks urgently with the European Union on nation-specific duty-free quotas, noting that the UK was now the European Union's primary trading partner.

Broader Context

Industry leaders in the European Union have also been warning for months that their own industry confronts being "eliminated" through the new 50% tariffs on American market shipments along with high energy costs and cheap Chinese competition.

Steel on in both the UK and EU is considered a foundational industry, providing elemental components in products ranging from skyscraper structures, wind turbines and railways to dishwashers and cutlery.

Implementation and Future Actions

These proposals require approval by EU nations and the European parliament, with the European Commission president calling on national governments and MEPs to move quickly in backing the initiative.

Should approval be granted, the EU will cut its current duty-free quota by 47% to 18.3m tonnes a annually, a level last seen in 2013. It will impose a 50% duty on foreign steel exceeding the limit and oblige nations shipping to the bloc to state where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and International Cooperation

These European nations will not be subject to tariff quotas or tariffs due to their close trading relationship in the EEA, the EU has confirmed.

Alongside the proposal, the European Union is pursuing a "metals alliance" with the United States to protect their respective economies from excess production.

The European Union must take immediate action, and firmly, before all lights go out in large parts of the European steel sector and its value chains.